finova, the UK's largest cloud-based mortgage and savings software provider, has today published the latest findings from its report Homeownership In The Digital Age. The research revealed that over half (53%) of homeowners have not yet tried remortgaging online, presenting a significant opportunity for lenders to develop and promote digital solutions in this area.
finova surveyed over 500 borrowers and 500 brokers to understand how time consuming the path to homeownership is in the UK. The findings and the report identify where there are opportunities for lenders to reassess and enhance their digital solutions to keep up with consumers’ evolving demands.
Borrowers report challenges remortgaging online
Although increasing numbers of lenders are expanding the digital tools available to their customer base, many borrowers are either unaware of digital remortgage solutions or find them challenging to use. In fact, 82% of homeowners did not find it easy to remortgage on an app, reinforcing the case for greater user education and more user-friendly interfaces to boost engagement and success rates.
The anomaly are homeowners aged 18 to 24, where half (50%) have successfully remortgaged using an app. However, given that this age group is already quite tech-savvy, it is clear that lenders can enhance their efforts to engage older borrowers to take advantage of these apps, too.
Traditional communication channels and mobile app chats remain popular
Alongside streamlining remortgage solutions, finova’s study confirms that lenders must also consider enhancing communications channels to meet the diverse needs of borrowers.
According to the research, older and first-time borrowers have a strong preference for phone and email communications, appreciating the value of the ‘human touch’. Almost half (48%) of homeowners say phone calls are the most effective method for addressing mortgage-related queries, reinforcing that maintaining traditional communications channels is vital.
Meanwhile, countering this trend, there is a growing acceptance of mobile app chats among younger homeowners and tech-savvy users. 40% of homeowners aged 35 to 55 prefer speaking to lenders on mobile app chats above all other channels, revealing a window of opportunity for lenders to refine their digital communication strategies.
Chris Little, Chief Revenue Officer at finova, commented:
“Despite lenders rapidly expanding their tech solutions, many homeowners remain reluctant to remortgage online—a hesitation that presents a major growth opportunity for forward-thinking players in the market. As rates begin to stabilise and countless fixed-rate mortgage deals approach their end, now is the ideal time for lenders to bridge the gap and make the remortgaging process more seamless for borrowers. The appetite for digital solutions is evident, with borrowers increasingly preferring to engage with lenders via mobile chat apps. By investing in user-friendly, online remortgaging tools, lenders can not only enhance the borrower experience but also boost their own customer retention in the years to come.”
